Branding

1. 7.1
CHAPTER 7:CHAPTER 7:
LEVERAGING SECONDARY BRANDLEVERAGING SECONDARY BRAND
KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY
Kevin Lane KellerKevin Lane Keller
Tuck School of BusinessTuck School of Business
Dartmouth CollegeDartmouth College

2. 7.2
Figure 2-9 Building Customer-Based Brand Equity
BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS
Choosing Brand Elements
Brand name Memorability
Logo Meaningfulness
Symbol Appeal
Character Transferability
Packaging Adaptability
Slogan Protectability
Developing Marketing Programs
Product Tangible and intangible benefits
Price Value perceptions
Distribution channels Integrate”push” and “pull”
Communications Mix and match options
Leverage of Secondary Associations
Company
Country of origin
Channel of distribution
Other brands
Endorsor
Event
Awareness
Meaningfulness
Transferability
Possible Outcomes
Greater loyalty
Less vulnerability to competitive
marketing actions and crises
Larger margins
More elastic response to price
decreases
More inelastic response to price
increases
Greater trade cooperation and
support
Increased marketing communication
efficiency and effectiveness
Possible licensing opportunities
More favorable brand extension
evaluations
Brand Awareness
Depth
Breadth
Recall
Recognition
Purchase
Consumption
Brand Associations
Strong
Favorable
Unique
Relevance
Consistency
Desirable
Deliverable
Point-of-parity
Point-of-difference

3. 7.3
Leveraging Secondary AssociationsLeveraging Secondary Associations
 Creation of new brand associationsCreation of new brand associations
 Effects on existing brand knowledgeEffects on existing brand knowledge
 Awareness and knowledge of the entityAwareness and knowledge of the entity
 Meaningfulness of the knowledge of the entityMeaningfulness of the knowledge of the entity
 Transferability of the knowledge of the entityTransferability of the knowledge of the entity

4. 7.4
Leveraging Secondary AssociationsLeveraging Secondary Associations
 Brand associations may themselves be linked to otherBrand associations may themselves be linked to other
entities, creating secondary associations:entities, creating secondary associations:
 Company (through branding strategies)Company (through branding strategies)
 Country of origin (through identification of product origin)Country of origin (through identification of product origin)
 Channels of distribution (through channels strategy)Channels of distribution (through channels strategy)
 Other brands (through co-branding)Other brands (through co-branding)
 Special case of co-branding isSpecial case of co-branding is ingredient brandingingredient branding
 Characters (through licensing)Characters (through licensing)
 Celebrity spokesperson (through endorsement advertising)Celebrity spokesperson (through endorsement advertising)
 Events (through sponsorship)Events (through sponsorship)
 Other third-party sources (through awards and reviews)Other third-party sources (through awards and reviews)

5. 7.5
 These secondary associations may lead to aThese secondary associations may lead to a
transfer of:transfer of:
 Response-type associationsResponse-type associations
 Judgments (especially credibility)Judgments (especially credibility)
 FeelingsFeelings
 Meaning-type associationsMeaning-type associations
 Product or service performanceProduct or service performance
 Product or service imageryProduct or service imagery
Leveraging Secondary AssociationsLeveraging Secondary Associations

6. 7.6
Co-BrandingCo-Branding
 Occurs when two or more existing brands areOccurs when two or more existing brands are
combined into a joint product or are marketedcombined into a joint product or are marketed
together in some fashiontogether in some fashion
 Examples:Examples:
 Sony EricssonSony Ericsson
 Yoplait Trix YogurtYoplait Trix Yogurt
 NestleNestle’’s Cheerios Cookie Barss Cheerios Cookie Bars

7. 7.7
Advantages of Co-BrandingAdvantages of Co-Branding
 Borrow needed expertiseBorrow needed expertise
 Leverage equity you donLeverage equity you don’’t havet have
 Reduce cost of product introductionReduce cost of product introduction
 Expand brand meaning into related categoriesExpand brand meaning into related categories
 Broaden meaningBroaden meaning
 Increase access pointsIncrease access points
 Source of additional revenueSource of additional revenue

8. 7.8
Disadvantages of Co-BrandingDisadvantages of Co-Branding
 Loss of controlLoss of control
 Risk of brand equity dilutionRisk of brand equity dilution
 Negative feedback effectsNegative feedback effects
 Lack of brand focus and clarityLack of brand focus and clarity
 Organizational distractionsOrganizational distractions

9. 7.9
Ingredient BrandingIngredient Branding
 A special case of co-branding that involvesA special case of co-branding that involves
creating brand equity for materials,creating brand equity for materials,
components, or parts that are necessarilycomponents, or parts that are necessarily
contained within other branded productscontained within other branded products
 Examples:Examples:
 Betty Crocker baking mixes with HersheyBetty Crocker baking mixes with Hershey’’ss
chocolate syrupchocolate syrup
 Intel insideIntel inside

10. 7.10
LicensingLicensing
 Involves contractual arrangements wherebyInvolves contractual arrangements whereby
firms can use the names, logos, characters, andfirms can use the names, logos, characters, and
so forth of other brands for some fixed feeso forth of other brands for some fixed fee
 Examples:Examples:
 Entertainment (Star Wars, Jurassic Park, etc.)Entertainment (Star Wars, Jurassic Park, etc.)
 Television and cartoon characters (The Simpsons)Television and cartoon characters (The Simpsons)
 Designer apparel and accessories (Calvin Klein,Designer apparel and accessories (Calvin Klein,
Pierre Cardin, etc.)Pierre Cardin, etc.)

11. 7.11
Celebrity EndorsementCelebrity Endorsement
 Draws attention to the brandDraws attention to the brand
 Shapes the perceptions of the brandShapes the perceptions of the brand
 Celebrity should have a high level of visibilityCelebrity should have a high level of visibility
and a rich set of useful associations, judgments,and a rich set of useful associations, judgments,
and feelingsand feelings
 Q-Ratings to evaluate celebritiesQ-Ratings to evaluate celebrities

12. 7.12
Celebrity Endorsement: Potential ProblemsCelebrity Endorsement: Potential Problems
 Celebrity endorsers can be overused by endorsingCelebrity endorsers can be overused by endorsing
many products that are too varied.many products that are too varied.
 There must be a reasonable match between theThere must be a reasonable match between the
celebrity and the product.celebrity and the product.
 Celebrity endorsers can get in trouble or loseCelebrity endorsers can get in trouble or lose
popularity.popularity.
 Many consumers feel that celebrities are doing theMany consumers feel that celebrities are doing the
endorsement for money and do not necessarilyendorsement for money and do not necessarily
believe in the endorsed brand.believe in the endorsed brand.
 Celebrities may distract attention from the brand.Celebrities may distract attention from the brand.

13. 7.13
Sporting, Cultural, or Other EventsSporting, Cultural, or Other Events
 Sponsored events can contribute to brand equitySponsored events can contribute to brand equity
by becoming associated to the brand andby becoming associated to the brand and
improving brand awareness, adding newimproving brand awareness, adding new
associations, or improving the strength,associations, or improving the strength,
favorability, and uniqueness of existingfavorability, and uniqueness of existing
associations.associations.
 The main means by which an event can transferThe main means by which an event can transfer
associations is credibility.associations is credibility.

14. 7.14
Third-Party SourcesThird-Party Sources
 Marketers can create secondary associations in aMarketers can create secondary associations in a
number of different ways by linking the brand tonumber of different ways by linking the brand to
various third-party sources.various third-party sources.
 Third-party sources can be especially credibleThird-party sources can be especially credible
sources.sources.
 Marketers often feature them in advertisingMarketers often feature them in advertising
campaigns and selling efforts .campaigns and selling efforts .
 Example:Example: J.D. Power and Associates’ well-publicizedJ.D. Power and Associates’ well-publicized
Customer Satisfaction IndexCustomer Satisfaction Index